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A US federal court has invalidated the controversial $100,000 fee on new H-1B visa applications, calling it unlawful.
The ruling by US District Judge Leo Sorokin in Boston came in the case of 20 Democratic state attorneys general who sued the policy implemented by President Donald Trump in September 2025. The decision is a big win for employers, foreign professionals, and tech companies that make use of the H-1B visa program.
Before the policy shift, employers were charged $2,000 to $5,000 in fees to sponsor an H-1B worker, based on company size and filing status. The Trump administration's new rule increased the fee to $100,000 per application, significantly raising the cost of hiring skilled foreign workers.
There are currently 65,000 visas available for the H-1B program each year and another 20,000 visas for those who qualify for advanced degrees from a US institution. Generally, approved workers can stay in the country for 3-6 years.
According to court filings, the higher fee resulted in a substantial decline in demand for H-1B visas. By Feb 15, just 85 payments in total ($100,000) had been made to US Citizenship and Immigration Services (USCIS), government data revealed, suggesting a notable drop in applications.
The Trump administration said payments were a legitimate monetary fine intended to limit the admission of some foreign nationals under federal immigration laws.
But Judge Sorokin did not agree with that interpretation. The payment was not a penalty but a tax, the ruling states, and thus had to be authorized by Congress.
“Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called,” he wrote.
Also Read: H-1B Visa Fee Hike and Wage-Based Selection: Indian IT Firms Face New Challenges
The move is likely to be cheered by firms such as technology companies, healthcare providers, engineering firms and others that rely on highly skilled foreign workers. Those opposed to the fee claimed it would deter legal immigration and increase the cost for US companies to hire specialized talent.
The decision also upholds a rule that large-scale immigration changes must be approved by Congress, which could limit further attempts to change immigration policy with executive orders.
